Life Insurance
Life insurance provides financial support to beneficiaries upon the policyholder’s death, helping to cover expenses and provide financial security for loved ones.
Key Types:
- Term Life Insurance: Offers coverage for a specified period (e.g., 10, 20, or 30 years). If the policyholder dies within the term, beneficiaries receive a death benefit. It’s generally more affordable but does not accumulate cash value.
- Whole Life Insurance: Provides coverage for the policyholder’s entire lifetime and includes a savings component (cash value) that grows over time. Premiums are higher, but it offers lifetime coverage and potential cash value accumulation.
- Universal Life Insurance: A flexible type of permanent life insurance with adjustable premiums and death benefits. It also includes a cash value component that earns interest.
- Variable Life Insurance: Offers both a death benefit and a cash value component that can be invested in various financial products like stocks or bonds. The cash value and death benefit can fluctuate based on investment performance.
Additional Options:
- Accidental Death and Dismemberment (AD&D): Provides additional coverage in the event of death or severe injury due to an accident.